Egypt’s El Marakby Steel is proceeding with the implementation of its investment project aimed at capacity expansion and product portfolio diversification. Currently, the company is in the process of hot trials at its new rolling mill, capable of 400,000 mt per year of rebar and wire rod production. El Marakby Steel expects to start commercial production in the second half of February, SteelOrbis has learned.
Currently, El Marakby Steel is running a rebar rolling line with a 250,000 mt per year capacity. In addition, the company is equipped with a 350,000 mt per year electric arc furnace but is able to ramp up crude steel production to 400,000 mt per year. Still, the nominal billet deficit will be 250,000 mt if both rolling lines are fully utilized. The company may again turn to billet imports despite the safeguard restriction of 16 percent or of a minimum $74/mt valid until April 11, 2020. As a result, El Marakby Steel is expected to adjust its production process according to market conditions, SteelOrbis understands.